BMG considers FitLink chase

Perth exploration company BMG Resources (formerly Brazilian Metals Group) has announced a non-binding heads of agreement for the possible acquisition of Brisbane-based online fitness training accreditation business FitLink.

This comes after last month’s announcement by BMG that it was undertaking a strategic review of its assets, assisted by LinQ Corporate.

In February, BMG had announced it had failed in an attempted $1.3 million capital raising, started last December, to fund development of its Treasure copper-nickel-gold project in the Republic of Cyprus.

The entitlement offer was partially underwritten by TRG Equity, but failed to reach the $400,000 minimum subscriptions required by that underwriting agreement.

BMG announced in September 2014 that it had entered into an option to acquire a 90 per cent interest in the Harts Range heavy mineral sands project.

Part of December’s entitlement offer was intended to go towards funding the continued evaluation of the Harts Range project.

FitLink is an online provider of certificate and diploma level courses in fitness, business and management.

The company claims to have over 30,000 graduates across Australia, New Zealand and India.

BMG says that FitLink had an unaudited EBIT of over $2 million for the 2015-15 financial year, which BMG says will be verified in the course of its due diligence.

BMG shares were trading flat at 0.9 cents today.